The decision will come today for the meeting of the Monetary Policy Committee of the Reserve Bank of India released from Tuesday. Many decisions are expected from this meeting which will directly affect the general public. RBI Governor Shaktikanta Das will announce the decisions of the meeting on Friday. However, economists do not expect further cuts in the repo rate from the RBI. Currently, it is the repo rate since May 2000 at 4% after 2000, which is the lowest level.
The rate was cut by 115 basis points to 1.15% in March, when the country was struggling with the threat of Corona. The reverse repo rate is 3.35%. The RBI has cut the repo rate by 1.15% during COVID-19. The reverse rape rate has been cut by 1.55% since March. On May 22, the reverse repo was reduced by 0.40% to 3.35%. There has been no change in rates since 22 May. Repo rate remains at 4% and reverse repo rate at 3.35%.
India's GDP decreased by 7.5% in the second quarter after a 24% decrease in the first quarter. This was better than RBI's estimate of 8.6% decline. After being better than expected, RBI can revise the GDP forecast in this policy from -9.5% to -7 to -9%. Additionally, experts believe that the Reserve Bank will not cut policy rates due to high inflation based on the consumer price index.
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